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Advantages of SLP Consolidation

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Written by   185
1 year ago

Alright, let's do something informal for a moment, yet it's a good way to ensure that your wallet still works in its most efficient form. Sort of.

This little article will help you chose what to do with your tokens through saving locked satoshis and speed up wallet loading times. The act of doing so is called consolidating your coins, or as I've called it in a previous post, coin recursion.

The thing with SLP transactions is that they are essentially still normal BCH transactions, only with the following observable attributes:

  • There is a locked amount of 546 satoshis on the transaction.

  • The SLP itself is the OP_RETURN of the transaction.

  • When you send SLP tokens, you always require an address with BCH allocated within, at a minimum of 700 satoshis.

Now, here's the beauty of consolidating SLP transactions, and I'll explain in full.

1. You release locked BCH satoshis

In a community where your cryptocurrency is meant for spending, having multiple SLP token transactions for one SLP token will have a big effect on your portfolio since most of the other wallets that don't recognize it will use up said (546 * amount of transactions), which then runs the risk of burning the SLP tokens.

But of course, you're a sensible guy. SLP transactions can only use simpleledger:q addresses.

When you consolidate SLP token transactions, you release your locked satoshis at a small amount, but it can be used as dust itself.

Now, imagine if you have 25 SLP token transactions for one token, and consolidated it. Essentially, you now have 12558 free satoshis, with 1092 sats potentially being used as fees. If you noticed my calculation, you will find that I only accounted for 23 SLP transactions, and that is because you don't simply have 25 inputs without bloating it, after all.

2. Lesser Coins Speed Up Loading Times

Now in other parts of the ecosystem, this might not be the case. However, there are only a few wallets accepting SLP tokens, one of which is Electron Cash SLP Edition.

Electron Cash SLP Edition, or EC SLP from this moment forward, is a fork of Electron Cash that is slowly being integrated back to the main Electron Cash client itself. EC SLP allows the user to create a wallet that is, by default, usable with SLP tokens. The client is also able for you to create your SLP tokens, and mint your NFT tokens as well.

There is a thing, however, with EC SLP 3.6.6 and other versions, and it is when you have received a lot of transactions before.

You see, SLP-applicable uses special software called Graph Search which allows the SLP token to be used. If you have imported a wallet full of SLP tokens, you will find that you can't really use it until the client has fully validated all your tokens unless you have managed to consolidate all of your tokens, but it can be a simple placebo.

This is a surprisingly small post from other posts I have made, and I have to admit, this helped a lot when I have multiple coins I have received, especially in flexUSD. If you also consolidate your tokens, you also decrease the risk of wallets breaking as well, if they still break.

These are just small tips. Honestly, I could've improved more on this topic, but this is new territory that's quickly becoming obsolete with the arrival of two CHIP proposals for miner-validated tokens.

Anyhow, this is Rowan, singing off.

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Written by   185
1 year ago
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